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1 Please include the formulas so I may input them into the actual spreadsheet. THANK YOU!! You guys/gals are the best! 5. You have two
1
Please include the formulas so I may input them into the actual spreadsheet. THANK YOU!! You guys/gals are the best!
5. You have two bonds with the following characteristics: Bond A Bond B Characteristics Coupon 5.0% 5.2% 7 7 Years to Maturity Par Value Price $1,000 $788.00 $1,000 $811.00 a. What are the bond durations? b. If rates rise to 5.75%, what are the new prices for each bond? D E F G A B a. Duration A 1 2 b. Price B A 3 4 YTM Coupon Par Purchase price 0.5 1.0 5.7500% 5.000% 1,000.00 788.00 B 5.7500% 5.200% 1,000.00 811.00 5 6 1.5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Price @5.75%Step by Step Solution
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